Not macro but micro changes in FTP may be possible: FIEO

Aamir H Kaki

Commenting on the mid-term review of the Foreign Trade Policy (FTP) by the Commerce Ministry, Ajay Sahai, Director General, Federation of Indian Export Organisations (FIEO) said that he is not expecting any macro change with regards to policy changes, but micro change may happen.

“On policy changes in Merchandise Exports from India Scheme (MEIS) or Services Exports from India Scheme (SEIS), I am not expecting any macro change, micro change may happen. I don’t think they will look into scrapping the scheme and bring in a new scheme, but changes within scheme are definitely possible,” he said while speaking to The Dollar Business.

The government has unveiled its first five-year FTP (2015-20) in April last year with an aim to double the exports of goods and services to $900 billion by 2020. In the policy, the government replaced multiple schemes with MEIS and SEIS.

The Commerce Ministry has commenced the review of FTP to carry out mid-term corrections in the export schemes, if required.

Sahai said, “The mid-term review has been announced by the finance minister while releasing the policy. This will be an occasion where the minister will look into the export target that has been fixed, what has been our performance and what needs to be done so that we will achieve the target, or if there is any need to revise the target.”

“Issues like whether the instruments that have been given in the FTP are helping the trade and the industry will be looked into,” he added.

On the role of GST on the schemes in FTP, Sahai said, “GST has nothing to do with this scheme because most of the schemes provide refund of the customs duty too. So basic customs duty in any case will continue it’s a different issue that efficacy of these instruments will reduce but these instruments will definitely be continued. Only the benefits under these instruments will come down,” he said.